Shimla: The Comptroller and Auditor General (CAG) report for 2025–26, presented in the Himachal Pradesh Vidhan Sabha by the Accountant General (AG), has laid bare serious financial irregularities, flagging revenue losses of over ₹3,200 crore and widespread lapses in fund utilisation across departments.
The audit reveals that against a total budget outlay of around ₹58,000 crore, nearly ₹6,500 crore remained unspent by various departments, pointing to poor planning and weak execution on the ground.
At the same time, excess expenditure of over ₹1,200 crore was incurred without proper approvals, violating financial norms.
A major concern flagged in the report is the ₹3,200 crore revenue loss, primarily due to poor tax administration in mining, excise, and transport sectors.
The CAG noted that weak enforcement, non-recovery of dues, and failure to plug leakages significantly impacted the state’s finances.
The report also highlights that over 1,800 utilisation certificates (UCs) worth approximately ₹4,750 crore were pending, indicating that funds released to implementing agencies were not properly accounted for.
This raises serious questions about transparency and monitoring mechanisms.
In the infrastructure sector, the audit found that 312 projects suffered delays ranging from one to five years, with cost overruns exceeding ₹2,100 crore.
The main departments such as Public Works, Rural Development, and Urban Development were among the worst performers.
The power sector under CM continues to be under stress, with accumulated losses of state utilities crossing ₹4,500 crore, while recovery gaps and transmission losses remain high. The audit also flagged inefficient billing and collection systems.
In the social sector, despite substantial allocations, the health and education departments showed underutilisation of funds by 20–30%, impacting service delivery. Shortage of staff, delayed procurement, and poor infrastructure were cited as major reasons.
The CAG further pointed out irregular procurement worth ₹850 crore, including cases where tenders were either not invited or norms were bypassed. Instances of idle investments of over ₹600 crore were also reported, where assets remained unused for years.
Presenting the report in the House, the government said the findings would be examined and corrective steps taken. However, the opposition lashed out, alleging gross financial mismanagement and demanding accountability.
The report will now be reviewed by the Public Accounts Committee (PAC), which is expected to summon officials and seek explanations.
The latest audit paints a grim picture of Himachal Pradesh’s fiscal health, underlining the urgent need for tighter financial discipline, better governance, and robust monitoring systems to prevent further losses to the public exchequer.
